GÜLER: CENTRAL BANK'S MOVES ARE CORRECT, WE MUST BE PATIENT

ETO President Metin Güler, evaluating the November inflation rate, stated that the Central Bank's recent steps toward price stability have not yet been reflected in the market. He emphasized that the inflation assessments have been accurate and that traders and industrialists are expecting price stability to be achieved through the Central Bank's future actions.

Eskişehir Chamber of Commerce President Metin Güler commented on the November inflation rate announced by TÜİK. He noted that the inflation rate exceeded market expectations but stressed the importance of understanding the reasons behind this situation correctly.

Güler: The Central Bank's assessments are accurate

In his evaluation, President Güler highlighted that the new management has focused on the Central Bank's primary responsibility of ensuring price stability and has structured its policies accordingly. He pointed out that the current inflation was significantly influenced by fluctuating exchange rates and regional political conditions, alongside the ongoing economic effects of the pandemic. Güler stated, "These steps are being taken as a result of accurate assessments. However, we have not yet seen the impact of the monetary policy that has been implemented for only a few weeks on November's inflation. There is significant pressure on the economy due to regional conditions, volatile exchange rates, and pandemic effects. I believe that this pressure will diminish in the future with the correct monetary policy in place."

"Both inflation and high interest rates harm investments"

Güler also touched on expectations regarding interest rates, pointing out that high inflation and interest rates, like fluctuating exchange rates, pose a threat to investments. He remarked, "The fluctuating exchange rates in 2020 did not benefit any aspect of the economy. It wasn't the level of the exchange rate but its volatility that caused significant harm to traders, industrialists, and even exporters. The same applies to inflation. However, I believe that high inflation should not fuel expectations for higher interest rates. I hope to see the positive effects of the Central Bank's correct assessments in the first quarter of 2021. This is also the market's expectation."